Skip to main content

tv   Fast Money  CNBC  December 1, 2009 5:00pm-6:00pm EST

5:00 pm
live from the nasdaq marketsite in new york city's times square, this is "fast money." i'm melissa lee. these are the "fast money" traders. was today's triple-digit rally the start of a santa claus rally? we've got the market covered for you. but first let's get straight to the news breaking after hours. gm ceo fritz henderson is in fact stepping down. let's go straight to phil lebeau with the very latest. phil? >> melissa, more changes at general motors. and this one is a huge change. ceo fritz henderson out as ceo immediately. ed whitacre jr., who has been chairman of the company since he was put into that job by the federal government this summer, is stepping in. he will be chairman and ceo while the company looks for a permanent ceo. so there's no timetable that's been given in terms of when ed whitacre will ultimately find a permanent replacement for fritz henderson. nor is it clear if fritz henderson was pushed out or if he decided to go on his own. most of the people that i've talked with who are close to
5:01 pm
general motors or who work inside general motors, they believe because of the timing of this announcement, the fact that fritz henderson was supposed to be out here in los angeles at the l.a. auto show tomorrow, we rescheduled the interview with him in the morning, most believed this was something that was forced on him by the board of directors, that they basically said listen, we need some changes and we need some things to happen quickly, you're either going to be the man to do it our way or perhaps we're going to have to find somebody else. and now you have fritz henderson stepping down as ceo. we did not get any more information in terms of why this decision was made now and what the next step is for general motors, aside from looking for a new ceo. ed whitacre says he will talk with reporters in the next couple days. what's interesting, melissa, when you look at this from the standpoint of running an automaker, ed whitacre, when he came in as chairman, he made it very clear, he's not a car guy, doesn't know the day-to-day operations of a car company, and frankly has spent as much time as possible learning what he can about general motors. now he's in charge of some very
5:02 pm
critical decisions in terms of the day-to-day operations of this company. clearly he's not planning to hold the job forever. but at a very tumultuous time for this company with a number of major things up in the air, whether it's opel, whether it's working toward an ipo in the future, whether it's what to do with saab. this is a company that has a lot of unanswered questions. and now ed whitacre has thrown an even bigger question in there. who will guide this company as ceo in the future? melissa? >> phil, you had mentioned the interesting timing of this announcement. i'm curious, based on your knowledge of the progress that general motors has made or perhaps hasn't made, is there a reason that you can think of as to why they might push fritz henderson out? >> not moving fast enough. that would have to be the main one. when you talk with people who are close to the board or you talk with executives within the company, the board wants gm to change and change quickly. now, the company's done a decent job stabilizing itself.
5:03 pm
stabilization's not enough. if they ever complain about the government-f they're ever going to -- for an ipo to take place and then hopefully see some value grow in the future for the shares that are issued to the public, this is a company that is going to have to be even more aggressive. they have shed four brands. they were at eight last year. now they're going down to four once they get rid of saab. that's incredible progress in the last year for a huge automaker. but in the eyes of the board this is a company that has to do more and do more quickly. >> just quickly, phil, can you think of somebody who might be on the short list? >> no. because you also have the pay restrictions in there. >> right. >> think about that. that's one thing, melissa, that is going to have an impact on the search for ceo. i said earlier i thought fritz henderson would step in as an interim. he is not. it's going to be ed whitacre -- now, bob lutz -- i'm sorry. bob lutz would step in. bob lutz still remains vice chair and is still critical to the management team at gm. but it's been pointed out today already, this is a company that has lost a lot of talent at the management level.
5:04 pm
a lot of talent. so where is the next ceo going to come from? >> all right. phil lebeau, thanks so much for that update. we do appreciate it. so you heard phil lebeau. maybe gm is not making progress fast enough. so is that the gain of perhaps a toyota, a honda, or a ford at this point? >> it's got to be a ford. ford's always the trade out of here. did have problems with that $9 level, as it has had problbefor. i think you could wait on a pullback but definitely didn't accept government money-i think still the trade if you want to buy american. ford. >> i think it just illustrates the continuing growing divide between gm and ford. we've said alan mulally's doing a great job there. they clearly have their act together. again steve points out it's had trouble at 9 you bucks. i think it's going a lot higher, frankly. it does have trouble at these levels. to me ford's the play. >> it's interesting that phil lebeau brought up the pay restrictions on the likes of a gm and you've got to wonder if that's going to play into the likes of a bank of america as it searches for a ceo. the fact the government has its hands deep into the business of these companies. >> and are they cutting off the nose to spite the face?
5:05 pm
they have a very diminished talent pool now. i'd be interested would they consider somebody outside the auto business? >> maybe someone from a turnaround shop that specializes in the auto industry. certainly there are a lot of possibilities out there. it's interesting too that phil lebeau could not think of a name on the short list. phil lebeau's the man who covers the auto industry -- >> it's not as if the guy's inside the business are doing a great job running these companies. maybe they're better off finding somebody who doesn't have experience in the auto business and just has business experience and can run it. >> let's get back to the story of the day, the market's triple-digit gains for the dow jones industrial average. s&p 500 also faring very nicely on the session holding on to that key 1100 mark. as you see there, just shied of the 112 mark that glide path was touting today on the halftime report as another resistance level. >> i think it started overnight. there was some good news out of china, some strong data, and then you had the situation with dubai in terms of getting some of the debt that will be restructured. but i think it all goes back to as we sit here the 1st of december the chase for performance. and i think that is what you're
5:06 pm
seeing right now. you actually had a shakeout last week during the holiday sessions that i think fueled further rally potential. what i mean by that is a lot of people got stopped out, a lot of people got stopped out of s&p futures, gold futures, crude oil futures, and they're chasing their way back into the marketplace right now. clearly it looks like december's off to a positive start. chase for performance clearly continues. >> it's interesting, though. then i'll go and look at the other side of the coin. you know, financials, the fact the s&p was up today, the dow waupz, it sort of masked the move in financials. jpmorgan came out and made negative comments about wells fargo, about bank of america. they actually raised estimates for u.s. bancorp, one of the names we mentioned positively yesterday. i thought this was pretty interesting. in terms of a trade to me it's always about the trade. we talked about jefferies getting down to 23, 23 1k36. it got there yesterday. boom, today it's up to 24 1/2. there's your trade. even though you can be wrong directionally in terms of the broader market, which clearly i have been, you can still --
5:07 pm
>> on the topic of financials it is interesting to see some of those best breed financials, the jpmorgans, goldman sachses of the world, they traded lower on a day most of the market was trading higher. karen, do you go through these names and say goldman sachs at 167 that could be attractive here? if we are to believe that money's on the sidelines and going to be deployed through the end of the year. >> well, i think goldman is astravth. probably jpmorgan. i don't own either of them here. but i don't look at one day's trading as particularly indicative of anything. i do think today was a little more about the commodities trade in china. i don't read a lot into it. but goldman sachs is getting close. >> how close, karen? >> oh, i would say about seven bucks. >> we talked about goldman sachs. we talked about jpmorgan last week. those breakdowns that they had technically below the 100-day moving average. then we talked about it last night. yes, the fundamentals may look good for them, but still there's technical challenges in place. i still think for goldman sachs, for jpmorgan they are best position if you see a rally in
5:08 pm
the dollar. i think a rally in the dollar you're going to see some money, some rotation go into the financials because you will have the inflation higher bond yield fears actually removed from the market. i think with the inflation fears, higher bond yield out there right now longer term the financials are going to -- >> when you say a rally in the dollar do you mean like a gain on the dollar index of .2%? honestly -- >> no. absolutely, melissa, you need to see a significant rally in the dollar. a significant rally. much larger than anything we have seen over the last three or four months. >> plus this morning we had good news, positive news out of china when our markets opened up. if you go back a year on the ag trade, potash was trading at $220. a lot of stocks on the move with that were getting positive news out of china. maybe you're going to have that steel run, maybe you'll have that ag trade last a little longer than we think. >> let's take a look at our chart of the day because this is interesting. we're getting all giddy about today's rally, the first trading session of the month of december, but it has been somewhat of a lost decade here.
5:09 pm
according to the folks over at s&p, the stock market only has 22 days left before we post the first negative decade in s&p 500 history. we would need to rally more than 12% on the dow jones -- on the s&p 500, excuse me, in order to be positive for the decade. 12.14% is the exact percentage there. >> a lost decade. >> can you imagine -- >> the '80s were a lost decade for me. >> if you're shooting yourself, kicking yourself because you didn't get in, 1999, 2000, 2001, whatever, now's your chance. >> well, we set the bar pretty high in december of 1999. and hopefully now in december of 2009 we're setting the bar pretty low. >> at least it illustrates one thing. it illustrates you need to learn how it trade these markets. i know the whole buy and hold thing, people want to talk about that. it doesn't work. you still have to be able to pick winners and losers. that's why we do the show every night, frankly. you like that? >> yeah, i like that plug. >> so for the last ten years, you should be watching "fast money" for the last three. >> we haven't been on the air for ten years. >> trade school. you like that? >> this feels like ten years. >> let's go through the topping the tape today because we
5:10 pm
certainly had a lot of sectors topping the tape in is today's session. metals let's kick it off there, gold climbing to 1200 bucks an ounce. hitting a new record high. 25th record this year. that is tremendous. 25th record of the year. this on dollar weakness, of course. >> yeah, and i mean it's something we're going to continue to talk about right now. today was asset allocation, first trading day of the month. you're going to see money flow. you're going to see it as money managers put money into commodities on a low yeer dolla story. shorting any of the commodity trades right now is really ludicrous and ridiculous. both the same. but there is clearly a short squeeze going on. i also believe in gold. i think gold right now, someone has taken a speculative position from the short side, and they're getting squeezed out of the market. >> right. guy, a while back you had doubts about barrick gold when it was announcing it was going to buy back some of the hedges. today it announced it is fully unhedged, it's completed that buyback it started back in september, and that stock rallied sharply. >> look, and they could prove to be geniuses.
5:11 pm
my only point about the miners and my point will continue to be these are the same guys that $600, $700 ago were hedging their production. now they're buying their production back. and the fact they announced -- i thought when they had announced it they'd already completed their buyback. it's funny that they announced it, then went out and bought it. seems sort of counterintuitive to me. maybe there's some legal reason they had to do it. i don't know. but i would have bought it back, then announce td. they announced it, then bought it back. at least that's what it appears like now. miners don't make a lot of sense. >> to pull gold out the ground costs $450 to $500 an ounce. so they're way in the money here. so i think it is pretty much priced in as far as the up side on a lot of these miners. >> i'm surprised. where do we ever start to see production make a difference in the prierks in the supply-demand dynamic of gold? >> you mean are they able to pull more gold out of the -- >> yes. and why buy the miners if they're not able to produce more? you know? then why would you buy snem you have to assume they're going to be able to produce gold. >> that's a great point. >> that's a very good point.
5:12 pm
>> at some point you would think you see supply coming on the market and the price change. but we haven't yet. >> sort of like opec, isn't it? when opec decides how many barrels are going to hit the market they sort of control it. so -- >> okay. what is the opec in the -- >> there is no cartel in terms of gold right now. listen, i think the gold trade is down to just basically you want to play gold, you've said it before, right here 1200 bucks you've got to be long gold and that's it p. that's the gold trade. you're either trading gold itself or nothing else. >> but if you believe gold is going to go higher, then why wouldn't you be in a miner that is unhedged like a barrick gold because they have much more leverage to the up side when you see that price of gold go up? how do you make that decision? if you're an investor out there, how do you decide if you believe gold is going to go higher, that gold miners versus gold or vice versa is the better trade? >> well, the leverage the miners will provide you is clearly great. the problem is you have then -- you have organizational risk, you have market risk, you have a lot of different risks that are not associated with just bei in
5:13 pm
long the outright commodity. right now be long the miners works because the broader markets, everything's working for that trade. at some point, though, the market might go down. newmont mining won't go up if the broader market goes down. that i can almost assure you. >> let's move on to another sector topping the tape today. the ag stocks. raising its targets on potash, mosaic and agrium, firms citing improved demand heading into 2010 behind that upgrade. and of course we had some positive comments on monsanto and got grain prices rising. weaker dollar in favor there. >> i think that's the first time this year you're actually seeing this, the underlying futures for corn and wheat are actually supportive of a lot of these agricultural names. corn, wheat futures now are above their 100-day moving averages. the first time they have done that since the spring. so you have names like potash that look great, ipi, intrepid potash, another name i like. monsanto i talked about it last night. i was a little bit wrong on this one. but i still think their exposure to the roundup business gives me caution with a trading at 82 bucks. >> i'll take the -- i'll sort of take the other side of monsanto.
5:14 pm
i know where joe's going with that. but again the knock on these guys had been valuation for years, but the reality is their valuation continues to go down as the stock continues to go higher. that's probably a reason to own the name. i understand what he's saying about the trade maybe being long in the tooth but i still think monsanto works here. >> is there a concern, though, joe, when you're citing the grain price that's we had been anticipating -- not we but the group had been anticipating rising prices for so long and that was the reason why they went higher? finally got the rising prices to me. that would be a signal to sell. >> i think also behind it too there's this epa decision out there in terms of the ethanol blend for 2010. and the epa has acknowledged that the blend mix has to go from 10% to 15% at some point in 2010. now, in the last couple days the epa pushed off that decision. but they're acknowledging that they need to raise that up to 15%. that's clearly bullish for the grains. >> all right. let's move on. retailers are also topping the tape today. group led by the specialty retailers, in particular guess
5:15 pm
closing higher by almost 13%. a number of them did nicely in today's session. retailers overall were up by about 2% across the board. karen, what stood out in your mind here? >> well, the thing that i really think about is people were a little bit disappointed with black friday. and i wonder if there's an extrapolation off black friday that i really shouldn't be making, each year we see a shift in the way shoppers do their holiday shopping, that cyber monday is clearly important and that we really can't make judgments off black friday. you need to get more data, which would include yesterday. so i still think, though, it's a little bit early to make any kind of expectation about the whole holiday season will go early. >> at the same time this is probably the first holiday season i can remember where analysts were saying shop early because the inventories aren't there. and yet this time around we didn't see shoppers go out and buy -- i mean, people weren't worried that they couldn't get a zhuzhu hamster or whatever the heck that is. >> constantly getting the sale
5:16 pm
e-mails. i'm getting bombarded with them. i don't know about the rest of the desk. but every time i wake up i have ten e-mails about another sale going on. what's my incentive to go out now? why don't i just wait? >> she's saying no inventory. >> yeah-f your kids want a zhu zhu hamster -- >> so i'll buy it on ebay. 600%. >> that's a good trade. >> as long as your kid's happy it doesn't matter. it's a great trade. >> fitch got that upgrade yesterday. i'll point this out for those shorts remaining, i'm not one of them anymore, but the stock opened at 40.78 yesterday, which turned out to be the high of the day. it actually traded lower the rest of the day. basically, it did nothing. today karen talks about it is, i'll talk about it again. valuations don't make sense. you listen to somebody like howard davidowitz, who is on this network all the time. he says these specialty retailers if you want to classify them as that are foeft. i agree. it's been a tough trade. it's going to work at some point. hopefully soon. >> i still say you've got to look at visa and mastercard, it's how they buy this stuff, they continue to move higher.
5:17 pm
i do not buy into this whole concept that we're using more cash this year. just don't believe it. visa and mastercard seems to be the strong trade -- >> as opposed to the credit card issuers which don't have the exposure to the debit in. >> right now it's struggled to get past that $40 mark. that was resistance. you should see a little bit of support there, but the real support is $35. you definitely have a lot of risk to the down side if we don't approach 45 to the up side. >> and you like the guess jeans, right? just a guess. the real tight ones. in a speech earlier today philly fed president charles plosser became the first federal to fishel to call for higher interest rates. he says foote fed does not act soon the inflation rate is likely to rise to a level that could be considered unacceptable. is he right? for some answers let's head to the bond pits where we find rick santelli. rick, you know what struck me is the markets don't seem to believe plosser. if you take a look at the reaction of the dollar index, it was basically nil. >> i agree. i don't know that i believe
5:18 pm
plosser. i think that a little religion early helps because i think ultimately there could be an inflation issue when everything gets traction and all this liquidity in the economy when it hits the ground is going to hit the ground running, whenever that is. but i like the notion that he's divorced himself a bit from the output gap and talked about maybe raising rates before unemployment comes down. i'm still a firm believer that if rates are this low everybody in the business community and financial community gets lazy and takes lazy investments like recycled positions in treasuries. >> hey, rick, i happen to agree with mr. plosser, but could he be -- i mean, me being sort of the -- i'm always looking for the conspiracy theories. he could just be setting himself up for the i told you so trade six to nine months down the road, maybe setting himself up for better position going forward. do you think that could be the case? >> i think that's possible. but i don't know. thinking back, i don't know if there's been a fed official in my lifetime that ever had a chance to say i told you so. >> hey, rick, it's joe.
5:19 pm
real quick, i haven't seen you since last wednesday. we had the news break on dubai. are you surprised, what you've seen in terms of price action in the dollar, we're right back to where we were almost last wednesday? >> you know, joe, that is the perfect question. and my answer is that the markets have not warned us adequately for many of the last several important crises. and i agree that i was surprised, but not really. i mean, i look at things like the lqd, investment-grade corporates might have topped. ultimately it's important what's going on in dubai for credit quality. with all this free and easy money i still contend the markets aren't sending you an appropriate message, and i think there should be a little bit more concern that that piece of the credit puzzle's important, even if the markets didn't move as much as we thought. >> hear the music, big sur. time to go. thanks for being with us. appreciate it. rick santelli in chicago. do not go anywhere. lots more coming up including two trading angles on that
5:20 pm
ge-comcast deal. plus all this. stocks keep climbing higher as the year comes to a close. but should you be wary of new road blocks ahead? a notorious wall street bear turned investment manager on how he's trading the market's next move. and dubai jitters may be subsiding, but is this the tip of the emerging market iceberg? the ambassador, fresh off a trip abroad, on how to protect yourself from the next dubai. plus, 2009 might be the year of the smartphone. but what will next year bring? "fast money" steps into the future to give you next year's must-have gadget today. when america's post-market show continues. on the plains. there's a hospital where technology has a healing touch. there's a factory giving old industries new life. and there's a train that got a whole city moving again. somewhere in america, the toughest questions are answered every day. because somewhere in america, 69,000 people spend every day answering them.
5:21 pm
siemens. answers. tdd#: 1-800-345-2550 i want everything right where i can find it. tdd#: 1-800-345-2550 anything that makes trading easier. tdd#: 1-800-345-2550 i want to be right in the middle of the action-- tdd#: 1-800-345-2550 you know-- i have to see what's going on. tdd#: 1-800-345-2550 and when i pull the trigger... tdd#: 1-800-345-2550 ...i've got to get the best price out there. tdd#: 1-800-345-2550 (announcer) try the new tdd#: 1-800-345-2550 for yourself. tdd#: 1-800-345-2550 call 1-888-4schwab tdd#: 1-800-345-2550 or visit today. tdd#: 1-800-345-2550 'course a trade doesn't always work out my way. tdd#: 1-800-345-2550 but when it does... tdd#: 1-800-345-2550 do i love that feeling.
5:22 pm
5:23 pm
welcome back to "fast money." we are live at the nasdaq marketsite. want to head to matt nesto back at hq with the very latest on northrop grumman. >> yeah, melissa, this is a statement out from reuters from the pentagon. a pentagon spokesman says that it cannot change the bidding process for this tanker contract. northrop grumman of course had filed a letter yesterday complaining about the complexity and the restrictions and the requirements within the bidding process and said unless the pentagon is willing to change the bidding process it's not
5:24 pm
going to submit a bid because it's considered in the words of alabama senator richard shelby a one-source bid proposal to boeing, or award contract to boeing. the pentagon essentially coming out this afternoon and saying we can't change this thing to favor any bidder, we've played this right down the middle and will continue to do so. the defense department will issue a final bidding specs probably in january. so it sounds as if the bidding process will continue as it is, but the process is certainly going to be the source of criticism, as it has been since the first one, which went flop. this is the second one. and if you read into it, it is a bit onerous. 373 requirements that are mandated in the bid. and also there are stipulation that's require the bidders to do fixed pricing 18 years into the future. some investors said that's not necessarily the best way.
5:25 pm
the pentagon holding firm for the he contract -- the bidding for the refueling tanker and saving the issue till the next update in january. >> matt nesto, thanks for that update. guy-s there a trade off here? if northrop grumman says we're not going to participate in this and boeing can go ahead and bid and be the sole bidder. >> shrek did a nice job with that update. he knows we call him that. the best aerospace defense trade has been rockwell collins. 52-week high today. valuation somewhat fair. the reported decent quarter, operating margins close to 20% now. i still go to col if you want to be in aerospace defense. >> let's move on here. play a little "bull market or b.s." december typically sees more positive returns than any other month. tng its winning record today. 127-point gain in the dow, of course. will this upward trend continue into 2010? time to play "bull market or b.s." we've got richard bernstein, cnbc contributor, ceo of richard bernstein capital management. richard, great to see you .
5:26 pm
>> thanks. >> gold new record today. time to get out? >> i'm not a big fan of gold. i think gold has left the fundamental arena and has gone into the more speculative arena. when we start seeing gold eagles sell 20% and 25% and 30% beyond their actual value tells you it's beyond a fundamental story. doesn't mean it can't go up fire while longer it probably can but my point is let's call a spade a spade here and let's say this is a momentum story and people tend to get out too late on momentum stories. so i think it's better to be selling into this than holding on. >> consumer cyclicals that's your favorite sector going into the end of the year? >> yeah. i think last time i was here i said the holiday season going to be better than people think. i still think that's the case. as long as employment continues to slowly improve -- >> black friday doesn't cause you to rethink that? >> no. i mean, one day. maybe everybody hit indigestion from bad turkey. >> switching gears in the middle of the year, going from bear to bull. kudos to you. you look at what's going on in the capital markets, it's claers clearly a chase for performance. what happens in january?
5:27 pm
we're only 30 days basically or less than 30 days away from that. what happens? >> i think the most amazing thing and maybe you guys know this better than i do, i haven't heard anybody talk about the january effect. which is the time of year we should be talking about the january effect. >> i think that's because of the tax situation. people don't have to take losers. >> but it's not just a tax-related event. there's a lot of different things and people trite to front-run it and do it in december. i think first quarter next year's going to be a very good time for small cap stocks. we may see the rally begin in december for small caps but last time i was here we said you want to keep an eye on small caps i think that's still the stier. >> so you still like the crappier -- that was when you were -- >> yeah. i'm not sure i used that adjective but -- >> it is. it's a valid technical -- >> one person's crap is another person's value. >> a lot of the stories we're seeing right now are cyclical stories relating to emerging markets, it's all cyclicality. people aren't talking about the cheaper undervalued cyclical in
5:28 pm
the united states predominantly in small cap vam yue which i still like because of that. >> what's the roadblock? after we get into 2010 is it higher taxes in 2011? what's the roadblock? where do you turn bearish again? >> a lot of the fears i think people have like inflation, taxes, fed funds going up, all those type of things are going to be second half 2010, 2011 issues. the profit psychsale troughing right now. profitability is starting to rev up. and i hope it will next year. but what generally you find is inflation has a huge correlation to corporate profits. taxes have a huge correlation to corporate profits. the fed funds rate has a huge correlation to corporate profits. as we go to 2010-2011 it becomes more of an earnings driven market. you have to find companies with incremental earnings growth to offset the things you mentioned. >> richard, always good to see you. >> my pleasure. >> let's move on to the next trade. this was a deal closely watched within cnbc of course. our own david faber reporting general electric and comcast have reached a deal on nbc universal and are just waiting
5:29 pm
for vivendi to complete the sale of its $5.8 billion stake in nbc. will this deal be a much-needed lift for ge which is on track to end 2009 slightly down on the year? what other ge divisions could be on the block as well? here to analyze this, nicholas hayden, analyst at stern mcgee. how should we look at ge once it gets rid of most of its stake in nbc universal? theoretically financials becomes a bigger part of its revenue. >> it's a work in process. you're basically trying to exit the classic ge businesses and put more emphasis on power and energy, put more emphasis on transportation and health care, and then you shrink ge capital to be a supportive player, not a growth engine. and you end up with being a facilitator for the power and the health care and the transportation he sales efforts. it's really a different kind of company. but we're not there yet.
5:30 pm
we've still got to purge what i believe to be the lightings and the appliances and those kind of -- automation. so there's still more to go. we've just seen one of those, quote unquote, classic businesses go. and that was the business that was sold here, security to united technologies recently. >> how long of a process will this be? at what point would you say that you know, ge has accomplished everything that it needs? i mean, is it going to be a two-year process? a one-year process? and what do you do with the stock in the meantime? >> well, there's a couple of things. one, this is an ongoing process, and jeff certainly got a big monkey off his back today in terms of the unknown as opposed to a good business, broadcasting business, unknown. i think the credit default swaps are telling you that they're trading above bank of america and credit -- citicorp, excuse me. that there's still problems out there for the real estate side. there are still some more charges coming. and when you ultimately get financial reform you'll see significant capital. >> so general electric's in some
5:31 pm
sort of reorg mode. does honeywell get in and get market share? >> i don't know if you saw today but last night alstom and schneider won the td business being sold by ariva. you know who was up today almost as many as alstom? siemens. and they didn't even have a bid in. okay. what you've got now is two companies that are primary competitors of ge in power, you know, gas and steam turbine, with transmission. ge doesn't have that. they have finance. they have smart. and you end up, they're going to participate much more effectively where the majority of power generation systems are going to be installed. emerging markets around the world. developed is a whole different game pup don't sell them together bundled. you sell the utilities. it's a replacement game. the wires are already up in most cases. so those stocks moved ahead. you're seeing a shift to europe in these big infrastructure markets. abb. alstom. this is why jeff was over twice in the last two weeks, working both on vivendi to get the deal
5:32 pm
done, he got that done, but he didn't close that until 12 hours after he found out he didn't win the opportunity to spend $6 billion. he first came in with private equity, didn't work. sarkozy said no, we don't sell to guys that finance 80% of their bid. so he came back and his bid unfortunately just like toshiba's didn't prevail. >> what's your top pick in your space? >> cooper industries. and that's basically much better incremental margins than anybody examines next year. sales growth. a huge increase in earnings. >> nick heymann, thanks for your time. any buyers of ge or cooper industries? >> siemens a company i used to trade in the old days. i still go back to honeywell. to me that's my favorite in the space. out of the four businesses they basically have two of them are firing on all cylinders and the other two might. so i'd go to honeywell before ge. >> anybody else with an industrial pick perhaps? maybe a financial pick for that matter. i mean, what are we talking about when we talk about ge? >> getting to be sort of interesting. it's been -- they did that disastrous acquisition -- >> i actually agree with nick.
5:33 pm
cb is great. cooper is a great stock. >> let's move sxon talk about the soo side of the ge trade. the comcast angle, cable company turned media kang lomb rat. a buy on new synergies. and when the nbc-comcast marriage spark other media mergers? and certainly when you think about some of the media networks out there that could be possible targets out there, there are a few out there. discover communications, for instance, is one of them. i don't know if any of you play in this space. >> i suppose there's cablevision. >> you saw cablevision, they're going to spin off madison square garden networks. a lot of people say once that happens they become a takeover candidate. maybe for a time warner, who maybe now has to get in the game. we'll see. i don't like cablevision because i don't particularly like what goes on with the family. but that's my personal family. but the stock is interesting. could be a $35 stock. could be a takeover candidate cbc. >> anybody read the pony blog, cnbc's pony blog? >> no. >> is it like a widget? >> the thing that nobody sees?
5:34 pm
what was on the pony blog today was what was going around the floor. according to cnbc's pony blog, starting this week goldman sachs employees are not allowed to gather in groups of 12 or more outside the office. determined to uphold its image of doing god's work, goldman sent a voicemail to employees instructing them to have no more private parties. so ten lords a-leaping, nine ladies dancing is okay. but if you see 12 bankers, they'd better be banking. they'd better be banking on the premises. >> what about if they go for a pickup basketball game at chelsea piers? >> not'll lou allowed. >> that's ten. >> that's ten. you don't have two back-ups on the bench? >> there you go. >> more "fast money" coming up. (announcer) we call it the american renewal.
5:35 pm
because we believe in the strength of american businesses. ge capital understands what small businesses need to grow and create jobs. today, over 300,000 businesses rely on ge capital for the critical financing they need
5:36 pm
to help get our economy back on track. the american renewal is happening. right now. in these markets, i'm glad i turned to fidelity for an annuity with guaranteed income for life. that's right, guaranteed income for life. my annuity from fidelity means my retirement income is safe. it's guaranteed, no matter what happens. if guaranteed income for life sounds good to you, do what i did -- let fidelity be your guide. call fidelity at... for details about guaranteed income for life.
5:37 pm
welcome back to "fast money." big start to the month of december on the first day of the month. we got the dow jones industrial average higher by 1 1/4%. over on the nasdaq composite we see -- let's do the s&p 500, mix it up a little bit. you guys switched it up on me. all right. nasdaq higher by 1 1/2%. over on the s&p 500 key level here we took and held 1100,
5:38 pm
although greg troccoli, glide path as he is known here on the desk, says 1112 is the new level to watch. but as we had the overall markets go higher, curious market buzz kill here. take a look at the intraday chart of apple. closing the day lower by just about .9%. but moved slightly lower in the after-hours session as you see there. so it actually right now is down by just about 2-plus percent. this is an interesting move. we e-mailed gene munster, friend of the show here, about that. he said there are a few rumors floating out there including changing of the carriers but none that he necessarily believes and none that really make sense as to why the stock would move that sharply lower. is this a buying opportunity? >> you know what? it probably is because i got stopped out in the last five minutes when you had a move that went from 202, the low 197 to 196.90 or so. i think the apple model is still phenomenal. for whatever happened there in the last ten minutes, i love for some sort of explanation fundamentally of what occurred. it does show me, though, that a
5:39 pm
lot of people loaded up on the long side in apple for it to go down as quickly as it did in, you know, five minutes basically. >> stop traded up to 208.71 on october 21st. 208 high on november 16th. that's trouble there for whatever reason. the price action today for whatever reason wasn't good. you look at am down on the day. you look at goldman sachs down on the day. two of the bell whethers that typically lead to the up side. both lower, makes you scratch your head. >> you just made me feel better. i like that explanation. >> i'm sure he's glad he made you feel better, joe. >> i am. >> the big unknown about apple, can they infiltrate corporate america? can they get the iphone on people's december snkz. >> like yours. >> yeah. i fwot about a week and a half ago. it's terrible. i was a blackberry guy. yeah, shut it off now. i was a blackberry guy. i think i need to go -- >> do you know how to use it, though? >> maybe some of it is a learning curve. but i think e-mail process, the coverage, there's a lot of things i'm not happy with that i was happy about with blackberry.
5:40 pm
>> maybe you could set up a tutorial with guy one day. >> i like the itouch. >> people apparently use it for music too this iphone thing. and apps. >> they have apps? >> the interweb. and you don't do that. >> not me. >> let's head to our prop desk now. obama administration may be mulling a home improvement incentive program to help you green your house. this according to the "wall street journal." and just as cash for clunkers sent auto stocks into fifth graer, home improvement stocks, they may be the next big obama trade. and we did see a nice rally in the likes of home depot as well as lowe's. >> it's amazing. home depot, spot on that 28 level. yesterday we thought -- at least i thought it would pull back. because it continues to have trouble with 28. then you got the comments out of obama. but you go to the "barron's" article this weekend and read it again. that article said everything we have been saying about home depot. i love what's going on. again i'll point out 28, huge resistance. we'll see how it trades tomorrow. i love the name. i'm sort of ishy squishy at 28. >> ishy squishy. that's a technical term if i ever heard one.
5:41 pm
how about like the appliances -- >> energy-efficient appliances, whirlpool. i think it's had a tough time getting out of this rage but i do think that's your play, is going to whirlpool as opposed to home depot or lowe's. >> whirlpool is a great play. also if you're looking for a short name sears is clearly it. trades with a 45 p/e. the only problem with sears is the short interest. i think it's well above 30%. >> do you like any of those -- >> i kind of like mohawk. >> carpet, flooring, et cetera. >> they do have some -- turbo charged. fair a amount of up side. >> let's answer some of your questions. fast message here from rich in dallas, texas. he writes to joe, "you've called for higher nat gas prices in the future but it continues to trade lower. what do you think can push it toward the 5.30 or 5.50 levels? >> i think rich has fast-fired me. natural gas on november 19th was 4.16. it got up to about 5.30 last week. it is in a pullback mode. there is a price gap that sits
5:42 pm
between 5.61 -- 4.61, rather, and 4.68. you need to get out below 4.60. right now natural gas sunder pressure. so looks like i might be wrong. >> rich in dallas, you've got your answer there. coming up next, bling, bras, and biotech making our list of today's biggest movers. got your trade on all three in "pops and drops." you're watching "fast money" on cnbc. we are first in business worldwide. (announcer) we're in the energy business.
5:43 pm
but we're also in the showing-kids- new-worlds business. and the startup-capital- for-barbers business. and the this-won't- hurt-a-bit business. because we don't just work here. we live here. these are our families. and our neighbors. and by changing lives we're in more than the energy business we're in the human energy business. chevron.
5:44 pm
5:45 pm
all right. time for "pops and drops." we kick it off with a pop here. pfizer was up 4% today. joe. ? pfizer right now they're looking to launch a generic drug company in japan. aging population in japan. pfizer looks good. i still think q12010 it gets above 20 bucks. >> interoil. the move higher by 9%. >> october 19th the ceo on. we said it's a momentum stock you want to get on board. i think the stock was trading in the low 50s at the time. closed at 06 today. positive news out of their antelope 2 project. hard to buy the stock on valuation, but momentum says it continues to go higher. >> pop here for limited brands. it was up 6%. steve, i think i know what you're going to be watching tonight. >> is it on tonight?
5:46 pm
>> it's on tonight. >> then i'm going to say stay away from the stock. it has that feel to it. it's already up 6% coming into this. sell it. >> a drop here for human genome sciences. hgsi was down 3%. karen. >> really it was down on this offering. they're going to sell 12.5 million shares, putting pressure on the stock. >> we've got a pop for bling today. isn't bling always a pop? >> i don't know. >> an incredibly rare pink diamond broke records today selling for 2.2 million bucks per carat in hong kong. the five carat piece sold for a total of $10.8 million including -- if you can't do the math. 7.4 million, 19 carat diamond sold 15 years ago. >> my wife's not watching. it's going to really ruin christmas. >> just in time for the holidays. >> dyncorp. >> we need the obama trade music for this one. i know guy loves that. this name has fallen from 22. >> that's an unprecedented interruption of "pops and drops" for the obama -- >> you like that? >> that's my favorite -- >> went from 22 down to 12.86
5:47 pm
today. the problem for this company most of their revenue 40% is derived in iraq. highly levered to the middle east. >> drop here for the apollo group. >> flying phoenicians having problems. s.e.c. having an investigation. the department of education betting in the game saying basically you can't recruit people and get paid for it. not good. i love the phoenicians. but it hasn't been the same since one of my favorite phoenician alum has left. you know what i'm saying? maybe you don't know what i'm saying. but you know what i'm saying. >> pop here for jesus iron. massachusetts woman who happened to be down on her luck found the image of jesus burnt onto her iron. mary joe cody says the jij a reminder things will get better in her life and hopes the iron brings joy to others around the holidays. haven't checked ebay lately, but make you a bet that that jesus iron is up there. bidding starts now. don't you think? >> you cynic. >> well, yeah.
5:48 pm
from new york. coming up next, we're going back to the future, to 2010 for our look at the next hot personal gadget. where will it come from, and how can you trade it today? you're watching "fast money." stay tuned. welcome to the now network, population 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. 154 are tracking shipments on a train. 33 are iming on a ferry. and 1300 are secretly checking email on a vacation. that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. right now get a free 3g/4g device for your laptop. sprint. the now network. deaf, hard-of-hearing and people with speech disabilities access
5:49 pm
if you want to see the weather ahead, push here. if you want to access 10 gigs of music you just downloaded to your hard drive, push here. and if you want to pull away from it all, you can push here. the all-new-40-gig hard drive nav and entertainment system on the 2010 lacrosse. from buick. it's the new class of world class. you all want to run your businesses more efficiently, so we've brought in a team of experts to help. one suggestion is to make your shipping more efficient with priority mail flat rate boxes from the postal service. shipping's a hassle! weighing every box... actually, with flat rate boxes you don't need to weigh anything under 70 pounds.
5:50 pm
if it fits, it ships for a low flat rate. call or go online for a free flat rate box shipping kit that includes free boxes and our helpful shipping guide. do it today, and we'll ship it all right to your door for free. ok, but i ship all over the country. you can ship anywhere in the country for a low flat rate. ship international, too. and remember flat rate boxes come in four sizes and shipping starts at just $4.95. call or go online for a free shipping kit with a full supply of free boxes, plus the shipping guide. act now, and you'll get them all delivered right to your business free of charge. priority mail flat rate boxes only from the postal service. a simpler way to ship. call or go online now to get started.
5:51 pm
all right. welcome back. while the rest of wall street scrambles to catch up on 2009 gains, we are already placing bets on 2010. taking a fictional fast-forward look at the events that might change your trades next year. when you buy a stock, there is no gray area. you're either right or wrong, a loser or a winner, in the red or in the black. so "fast money" fast-forwards and gives you 2010, the year that was. ♪ welcome to the future while '09 had its share of popular gizmos and smartphones from one set of handset makers, 2010 had a game-changing event. >> boom and boom. >> boom and boom. >> on september 1st, 2010 apple released a ten-inch tablet, taking the world by storm.
5:52 pm
everyone from world-traveling wall street bankers looking for the most lust-worthy gadget to stay at home moms seeking the perfect e-cookbook to doctors tracking medical records snapped up the iconic device. with that beautiful screen, elegant mac osx, and even 3g wireless connectivity, this dynamo made one-dimensional products look pedestrian. >> apple once again delivered on the big hype and came out with a blockbuster mobile tablet. the itablet. a million and a half units. way ahead of analysts' expectations. >> as apple soared past 300 bucks, those who snapped it up in december 2009 made nostradamus look like a nobody. and as apple locked up the developed world, cheaper netbooks began to bring computing to the global masses. with the 2010 tech trade in the books, where was your money? >> let's be clear. i know all of you out there are probably listening. if they only caught the middle part of that piece of tape we
5:53 pm
just played, they're thinking, tablet? i didn't hear about the tablet. this is what we're thinking is going to happen in 2010. but do you buy apple today based on that? >> that really is a back to the future kind of trade. do you remember when they released the newton tablet? >> the newton? >> like 19 years ago. when john skully was the ceo. and it was this great idea. and it completely bombed. timing's everything. >> wow. >> that's really going back, right? >> yeah, that's really going back. >> this could be it, though. this could be the one. >> i think there is a trade here. i think clearly at some point this is what the microsofts, the googles, the apples are going to be addressing, a way to get that combination of a smartphone, a netbook, and the e-reader all into one. and i think it's phenomenal. for the iphone apps. you get something the digital print media would be delivered. this would be good for the newspaper, magazine business. and i do think, yes, it's going to happen. >> maybe by 2010 guy will be able to figure out -- >> no gadgets for me. nope. >> final trade right after this. boss: come a long way, that's for sure. and so have you since you started working here way back when.
5:54 pm
gecko: ah, i still have nightmares. anncr: geico. 15 minutes could save you 15% or more on car insurance.
5:55 pm
5:56 pm
quick programming note. do not miss the premiere of "meeting of the minds: rebuilding america tomorrow" 8:00 p.m. featuring jeff immelt, nucor ceo. >> general dynamics a trade off the obama -- >> cablevision. >> krairn. >> cbs. >> steve. >> whirlpool. >> i'm melissa lee. see you back here tomorrow 5:00 p.m. for more "fast money" on cnbc.
5:57 pm
. >> announcer: tomorrow -- trading 2010. the next computer breakthroughs. pete looks ahead at the smartest tech plays. plus, 21 trading days left. we'll chart the course and help you make the most of 2009. "fast money," 5:00 eastern on cnbc. first in business worldwide. tdd#: 1-800-345-2550 if i'm breathing, i'm thinking about trading. tdd#: 1-800-345-2550 i always have my eye out for a stock on the move. tdd#: 1-800-345-2550 doesn't matter if a company sells computer chips tdd#: 1-800-345-2550 or, i don't know, fish and chips. tdd#: 1-800-345-2550 i'll look at all kinds of stocks before i settle on one. tdd#: 1-800-345-2550 if i think i'm onto something i'll check it out, tdd#: 1-800-345-2550 you know, see what other traders are up to. tdd#: 1-800-345-2550 when everything feels right though, tdd#: 1-800-345-2550 that's when i get serious. tdd#: 1-800-345-2550 and the minute i get into something, tdd#: 1-800-345-2550 i already know when i want to get out.
5:58 pm
tdd#: 1-800-345-2550 of course, every now and then i'll talk with somebody tdd#: 1-800-345-2550 who knows what i'm trying to do. tdd#: 1-800-345-2550 (announcer) switch to schwab today. tdd#: 1-800-345-2550 you'll get the tools, the technology tdd#: 1-800-345-2550 and the support to trade your way. tdd#: 1-800-345-2550 go to tdd#: 1-800-345-2550 or call 1-800-540-7304 tdd#: 1-800-345-2550 right now. tdd#: 1-800-345-2550 but opportunities can vanish like that... tdd#: 1-800-345-2550 most days, i'm right there tdd#: 1-800-345-2550 when the market opens. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at
5:59 pm
but we're also in the showing-kids- new-worlds business. and the startup-capital- for-barbers business. and the this-won't- hurt-a-bit business. because we don't just work here. we live here. these are our families. and our neighbors. and by changing lives we're in more than the energy business we're in the human energy business. chevron. because we believe in the strength of american businesses. ge capital understands what small businesses need to grow and create jobs. today, over 300,000 businesses rely on ge capital for the critical financing they need to help get our economy back on track. the american renewal is happening. right now.


info Stream Only

Uploaded by TV Archive on